Finance Minister Taiwo Oyedele has warned that petrol could cost at least ₦2,000 per litre if the Federal Government restores fuel subsidy. Speaking in Abuja on Thursday, October 8, he said bringing back the policy could weaken government revenue, increase borrowing costs and put further pressure on the naira.
Oyedele projected that the naira could weaken to around ₦3,000 per dollar within months if subsidy returns. He argued that the resulting pressure on foreign reserves and public finances could reverse progress in reducing inflation and lowering interest rates. These figures are the minister’s projections, not confirmed future outcomes.
The minister said restoring subsidy could cost the government more than ₦20 trillion annually, based on Nigeria’s estimated daily petrol consumption. He argued that such spending could leave less money available for public services, including healthcare, education, security and the payment of salaries and pensions.
Instead of reinstating a blanket subsidy, the government says it is pursuing temporary petrol discounts at NNPC stations, a proposed ₦1,350-per-litre ceiling on petrol landing costs, cash transfers to vulnerable households and faster deployment of compressed natural gas vehicles. The measures come amid renewed calls for relief from rising fuel prices and the cost of living.
